Economic development organisations in Greater Manchester have long recognised the importance of stimulating business innovation as part of promoting a successful economy. The significance of innovation to the conurbation has been emphasised in a series of reviews which set out a vision for Greater Manchester as a leading knowledge city, embracing creativity, innovation and enterprise. Despite significant efforts, this vision has yet to be fully achieved. The recent economic downturn and changing policy and institutional structures mean that it is timely to reappraise approaches for business innovation support.
This paper considers how Greater Manchester might move forward in stimulating business innovation to underpin long-term sustainable growth. The aim of the paper is to contribute to deliberation about the priorities and strategies of the new Greater Manchester Local Enterprise Partnership and to ensure that enterprising companies in Greater Manchester can participate in a vibrant network of services and facilities that encourages and enables them to innovate and grow.
The paper focuses on private sector business innovation, giving particular attention to stimulating and supporting innovation in small and medium-size enterprises and in clusters of small and large firms. We define innovation broadly – considering product, process, organisational, and service innovation, and including hidden forms of innovation not captured by conventional indicators. The paper starts by setting out the broader context, examining current thinking on key drivers of economic growth and business support services required to stimulate innovation and growth in companies. The approach to business and innovation services in countries known for having achieved high productivity growth is examined, alongside a review of recent UK experience in providing business and innovation support to companies. Finally, the implications for future provision of innovation support in Greater Manchester are considered.